Thread by @faisalislam

Coming up on #bbcnewssix more #nodealpapers stories - fuel, refineries, tariffs ... and what have Councils been buying to mitigate fuel supply risks...?

NEW: Council No deal plans, seen by BBC, reveal “danger to the viability” of refinery under Govt’s temporary tariffs due to absence of level playing field - UK petrol exports to EU, incl Ireland face 4.7% WTO tariff. Govt set import tariff at 0 to minimise inflationary shock /1

Petroleum Industry Association boss Stephen Marcos-Jones tells BBC all the industry is asking for is a level playing field: “we could end up in a situation where it becomes extremely uncompetitive for a domestic industry to to stay in the UK.” /2

..industry also raises prospect of dependence on foreign fuel, eg from Russia, argues long term would bring inflationary/strategic pressure: “do we really want to be dependent on country like Russia? For our fuel?” Says PIA. Russian petrol would be able to access UK tariff-free.

P66 Humber refinery boss Darren Cunningham tells BBC: “anything that puts UK industry at disadvantage, particularly in post Brexit world is not a good idea- it’s not a level playing field but believe me in context of refining 5% tariff is a significant figure”. /4

BBC understands Scottish & Welsh Governments have written a private letter to the UK Government “expressing alarm.. about the harmful impact” of tariff plan and to ask it “to take immediate steps” to “protect” a “strategically important sector” - NB they have no power on this /5

UK Government point out that the move was backed by consumer groups etc... and seeks to keep petrol prices low for users. The Sunday Times Yellowhammer leak points to the issue as “inadvertent”. Issue has been discussed at top of government in Cabinet committee. /6

Elsewhere in council papers seen by BBC, preps to mitigate No Deal worst case scenario on fuel supply...

Chichester District Council is buying...a 24,000 litre fuel tank & filling station with taxpayer Brexit funding for £30k to avoid the need to operate “hand to mouth” ⛽️ 👀 /7

Councils have been identifying which priority staff would require access to emergency fuel supplies, in event of disruption - for example this “identify key staff who would require fuel warrants” from Dorset council’s Brexit risk register... part of existing national fuel plan /8

And you get these responses eg from Aberdeen city Council risk assessment saying it will be fine re fuel (obviously) but pointing to a UK-wide national planning assumption that in the worst case disorderly no deal scenario “shortages will largely impact on the south east” /9

Worth reiterating that the plans for fuel emergency are already well prepared, and well drilled, and it should be last sector to have problems, eg competition waivers already in place - but some of the councils mitigating actions are rather notable. NEP-F being dusted down. /10

Full story on refineries is here...
bbc.co.uk/news/business-…
and there’s more too

Yesterday’s on food is here:
bbc.co.uk/news/business-…

More #nodealpapers to come...

Scottish Finance Secretary McKay met with Business secretary Leadsom today raising this refinery issue among others... “harmful no deal tariff regime reconsidered as a matter of urgency’...

...so the Scottish Government has been keen to protect its refinery industry from No Deal Brexit plan tariff consequences. That is Grangemouth. which is owned by INEOS. Which is mostly owned by Jim Ratcliffe, one of the most vocal business Brexit backers...

Ratcliffe never a fan of No Deal/ WTO terms though - and backed Mrs May’s Withdrawal Agreement, urging MPs to pass it.

Lastly - Government has responded - says it is closely working with oil and gas sector, and “we will continue to work flat out to prepare for the potential impact on UK refineries in the event of Brexit without a deal...” says a government spokesman.

My colleague has got the sharp letter from Scottish & Welsh Governments to UK Government from last month, that I mentioned yesterday in my report - on their “alarm” at “harmful impact” of trade tariff plan for refineries and asking for “immediate steps”

https://twitter.com/jamswilliams85/status/1164070883989893120?s=21

Again - the UK Government argue that they are protecting the consumer, mitigating inflationary impact of a strictly WTO terms No Deal Brexit at the petrol pump. That the tariffs are temporary. But they made the opposite judgement for eg farming and ceramics.

NEW: Chancellor of the Duchy of Lancaster Michael Gove, when asked by BBC in Wales about refinery tariff situation:
“The tariff-schedule was prepared under old government of Theresa May we now have a new PM and it is being reviewed and will be published shortly in its full form”.